Chill Springs produces premium bottled water. In the Bottling? Department, workers bottle the filtered water and pack
Question:
Chill Springs produces premium bottled water. In the Bottling? Department, workers bottle the filtered water and pack the bottles into boxes. Conversion costs are incurred evenly throughout the bottling? process, but packaging materials are not added until the end of the process. February data from the Bottling Department? follow:
Costs in beginning work | Costs added | ||||||||
in-process inventory | during February | ||||||||
Transferred in | $980 | Transferred in* | $133,000 | ||||||
Direct materials | 0 | Direct materials | 32,130 | ||||||
Direct labor | 620 | Direct labor | 33,200 | ||||||
Manufacturing overhead | 776 | Manufacturing overhead | 22,310 | ||||||
Total beginning work in process | Total costs added | ||||||||
inventory as of February 1 | $2,376 | during February | $220,640 | ||||||
*The Filtration Department completed and transferred out 153,000 liters at a total cost of $133,000. |
Chill Springs | ||||||||||||
Bottling Department | ||||||||||||
Assignment of Costs | ||||||||||||
Transferred-in | Direct | Conversion | ||||||||||
Assign costs: | Costs | Materials | Costs | Total | ||||||||
Completed and transferred out | 153,000 | x ( | $0.87 | + | $0.21 | + | $0.37 | ) | $221,850 | |||
Ending work in process inventory: | ||||||||||||
Transferred-in costs | 1,000 | x | $0.87 | 870 | ||||||||
Direct materials | 0 | x | $0.21 | 0 | ||||||||
Conversion costs | 800 | x | $0.37 | 296 | ||||||||
Total ending work in process inventory | 1,166 | |||||||||||
Total costs accounted for | $223,016 |
Requirement 1. Prepare the journal entry to record the cost of units completed and transferred to finished goods. ?(Record debits? first, then credits. Explanations are not? required.)
Journal Entry | ||||
Date | Accounts | Debit | Credit | |
Requirement 2. Post all transactions to the? "Work in Process
Inventorylong dash—?Bottling"
T-account and determine the ending balance. ?(Leave any unused cells? blank.)
Work in Process Inventory—Bottling | |||
Bal. February 1 | |||
Bal. February 28 |